PORTSIDE. Port of EVERETT CENTRAL MARINA SOUTH TERMINAL LOOKING TO THE. Winter

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1 PORTSIDE LOOKING TO THE Port of EVERETT Winter 2019 CENTRAL MARINA SOUTH TERMINAL NEXT CENTURY p.2 IMPROVEMENTS p.4 MODERNIZATIONp.8 1

2 LOOKING FORWARD Public Outreach Underway for Strategic Plan Update On July 13, 2018, the Port of Everett celebrated 100 years on the Everett waterfront, after a nearly unanimous 1918 vote of the public to form the Port. A century brings nothing if not change. From shingle mills and fish processing to windmills and recreational boating, the Port has seen boom and bust. What will the next 100 years bring? We have been asking, and will continue to ask you to help shape that future. events, and from our employees. The graphic to the right, generated by Colibri Facilitation, is a visual depiction of the outreach efforts so far. Some of the common themes we have heard are: Continue to support the aerospace industry in our county Maximize and expand our deep-water seaport In 2019, the Port of Everett will work to update its Strategic Plan, and with it, identify a vision for the future of the Port of Everett. With the completion of the current capital projects underway, the Port of Everett will be out of developable land for future economic development. The Port Commission has asked staff to focus on property acquisition efforts that support the working waterfront, look at supporting the economic development needs of north and east Snohomish County, and seek public input on the vision of our future. This past summer, Port staff solicited feedback from the business community at the Economic Alliance of Snohomish County Port Report, the community during our Centennial Support economic development of the Arlington- Marysville Manufacturing Industrial Center Explore the potential for air cargo growth, warehousing, and inland port facilities, specifically as it relates to rail Expand the export of the products that support the agriculture and forest products industries Continue to focus on environmental stewardship and public access at the waterfront in our operations Complete the tourism destination of Waterfront Place, and consider seaplanes If you would like to comment, please fill out and send in your feedback to the survey on the back of this publication or visit IN THIS ISSUE 3 Latest News Looking to the future; Blue Heron Slough Update 4 Marina Central Marina improvements underway, set to open summer Public Access Grand Ave. Park Bridge update; Centennial recap; Kite shelters at Jetty Landing 6-7 Waterfront Place Hotel Indigo; Housing News; Millwright Loop 8 Seaport South Terminal Modernization; Mill-A cleanup; Federal Rail Loan 12 Real Estate Riverside Business Park; AMMIC Update 13 Tenant News OceanGate dives deep; ORCA receives a grant; Woodfire Grill remodel 14 Port Briefs Port Centennial Recap; Naval Station Everett News 15 Employee Focus CEO Les Reardanz returns; Ironman at the Port; 25 years at the marina 1 COMMISSION MEETINGS Port Commission meetings are at 4 p.m., the first and second Tuesday of each month, at the Port of Everett s Waterfront Center, 1205 Craftsman Way in the Blue Heron Room (2 nd floor). Bruce Fingarson District 1 Tom Stiger District 2 Glen Bachman District 3 CEO/EXECUTIVE DIRECTOR Les Reardanz 2 3 The public is encouraged to attend. PORT SIDE TEAM This issue of the Port Side is written and produced by the Port s Public Affairs Department and printed by DCG ONE. 2 PORTSIDE WINTER 2019

3 LATEST NEWS Created by Colibri Facilitation, this graphic illustrates the input of community members on the direction of the Port s next 100 years. Blue Heron Slough Update Mitigation Bank to Support Local Salmon Recovery The Port Commission agreed last fall to a contract amendment with Wildlands, LLC, representing a major step toward the construction of Blue Heron Slough, restoring the land to its natural state. This allows the Port to negotiate a consent decree to settle liabilities of the Port s and other parties for historic contamination to provide the funding for the restoration of the slough. We re excited for the future of Blue Heron Slough and the benefits to the environment that will come with bringing the site back Blue Heron Slough is the former Biringer Farm property along the Snohomish River estuary. The approximately 350-acres on Spencer Island will be returned to its pre-developed natural condition, serving as a wetland mitigation bank. These conservation banks can be used to compensate for the adverse and unavoidable environmental impacts of other projects, allowing local governments and developers to earn credits to offset the unavoidable impacts. to its natural function as a functioning wetland. We re excited for the future of Blue Heron Slough and the benefits to the environment that will come with bringing the site back to its natural function as a functioning wetland, said Erik Gerking, the Port of Everett Director of Environmental Programs. From a landscape ecology perspective, Blue Heron Slough will constitute one of the last large properties restored to a tidal wetland in the lower Snohomish River delta. It has a high potential for providing tremendous regional environmental benefits given its location near the mouths of Union Slough and Steamboat Slough. As a result, the restoration project is a high priority in local salmon recovery plans. The Port of Everett has three conservation projects to compensate for future aquatic resource impacts from Port development projects: Blue Heron Slough, Union Slough and the Malsby Mudflats. The Port earned an environmental mitigation award from the American Association of Port Authorities in 2001 for its work on the Union Slough project, which exceeded the Port s expectations for the success of the environmental restoration. An aerial view of Blue Heron Slough. 3

4 MARINA American Construction dredges the Port of Everett s Central Marina in the Fall of Multi-Million Central Marina Improvements Underway WORK SCHEDULED TO BE COMPLETED MID-2019 The third phase in the Central Marina Improvements program is underway, with a $6.5 million contract awarded to American Construction Company, Inc. The project is slated for completion in June This critical Marina project supports the upland developments with Fisherman s Harbor, along with continuing forward with the Port s efforts to recapitalize its aging marina infrastructure. The project includes: A new public access Guest Dock 5 and activity float at the base of the Fisherman s Harbor project. A portion of waterways in the northeast corner of the Central Marina dredged to authorized depths. A new K-Dock, catering to yacht-class vessels and providing synergy with upland yacht brokers. A new L-dock for the commercial fishing fleet utilizing floats from the existing Central P-dock. This is a major milestone for the Port of Everett s Marina, Port Commission President, Glen Bachman, said. This work is part of the Port s vision of a mixed-use waterfront, noted Bachman, adding that it creates synergies between the upland properties and the marina. This phase of the recapitalization of the marina is expected to be completed around the same time as the SE Millwright Loop Road, and would complete infrastructure (both upland and in-water work) for Fisherman s Harbor. Once both projects are completed, the Port will open the public access elements of Fisherman s Harbor to the public, including the new esplanade and splash fountain. The project is funded in part, by a $1.4 million Boating Infrastructure Grant (BIG), administered by the State s Recreational Conservation Office. I want to recognize our staff who got us to this point, said the Port s Acting CEO Lisa Lefeber, during the contract award. From undergoing nine years of regulatory work and scientific studies to secure dredge material disposal authorizations, to creating new dock designs, this project has had many unforeseen challenges. The Port s goal to rebuild the marina over the next 30 years began in Since then the Port has invested $75 million in marina improvements, including creating a new state-of-the-art, environmentally friendly boat yard in the Craftsman District. CENTRAL MARINA IMPROVEMENTS PHASE 4 The Port recently completed a boater outreach process on the final boathouse relocation project, which calls for the Port to rebuild Central G-Dock, and relocate the orphan boathouses to the new dock. This project is planned to begin either summer or fall of Central Marina represents the oldest infrastructure in the Port of Everett Marina. Earlier improvement phases replaced bulkheads, removed historical contamination from Everett Shipyard, and constructed a new Central I-Dock. The Port of Everett owns and operates the largest public marina on the West Coast, offering 2,300 permanent and guest moorage slips, fueling and haul-out facilities. The Central Marina was built in the early 1960s. 4 PORTSIDE WINTER 2019

5 PUBLIC ACCESS Grand Avenue Park Bridge COMPLETION PLANNED FOR 2020 The Grand Avenue Bridge, a City of Everett project, bringing foot traffic from downtown Everett to the waterfront, will open in early The completion date shifted due to the protracted time to manufacture steel components. The bridge crosses several Burlington Northern (BNSF) tracks and under power transmission lines, requiring close coordination with the railroad and Snohomish County Public Utility District. Bridge placement was planned to occur between April and the middle of September 2018, but the delay in steel fabrication means the bridge-setting will have to wait until April Once the bridge structure is assembled and set in place this spring, the bridge deck will be poured, lighting installed and other finishing touches made. The Grand Avenue Park Bridge was designed to carry utilities across a steep slope, replacing underground storm and sewer pipes. The pedestrian component was added to the bridge via federal funding, providing pedestrian access between the Grand Avenue Park bluff and the waterfront. horns, waving flags and shooting water cannons. The community event brought together the year-long efforts to commemorate the Port s centennial. South Marina near Anthony s Woodfire Grill. In 2017, the Port installed two similar kite picnic shelters at Boxcar Park. COMMUNITY CELEBRATES PORT S CENTENNIAL On July 13, 2018 the Port of Everett celebrated its Centennial, marking its first 100 years as part of the community. On July 14, the local community helped celebrate the anniversary. Centennial activities included a history book, mural and a community celebration. The day kicked off with a pancake breakfast, followed by the first ever Port Beat 5K Fun Run along the Port s waterfront. Community members who reserved a seat were treated to a historic bus tour with narration by Port representatives and Historic Everett. As part of the celebration, the public had the opportunity to place mementos inside our centennial time capsule which will be opened 50 years from now, in the year % FOR PUBLIC ACCESS In late 2018 the Port issued a check for $586,000 to the City of Everett to enhance off-site public access as part of its South Terminal Modernization project. It is the Port s desire and recommendation that this money be used to retain and enhance current public access activities within the City of Everett. KITE SHELTERS AT JETTY LANDING PARK The Port upgraded Jetty Landing Park in October 2018 with two new kite style picnic shelters. During the summer months, the shelters will provide ample shade as well as seating at one of six new picnic tables. PIGEON CREEK TRAIL WINTER CLOSURE Due to increasing security issues, the Port of Everett will be seasonally closing Pigeon Creek Trail, Monday thru Friday effective Nov. 1 to Feb. 28. Access to the trail will remain open during the weekend and will be open every day beginning March 1. To cap off the festivities, the Port held a Maritime Parade that viewers watched from Boxcar Park. Port partners paraded through Port Gardner Bay honking The project also included the installation of a concrete sidewalk providing access to the shelters. In 2019, the Port will construct the new Commodore Plaza in the 5

6 WATERFRONT PLACE Hotel Indigo at Fisherman s Harbor inside the Port of Everett s Waterfront Place will open mid-2019 Hotel Indigo Coming to Fisherman s Harbor SET TO OPEN IN JUNE 2019 Hotel Indigo continues to rise at Fisherman s Harbor inside the Port of Everett s Waterfront Place development. Crews are steadily working to meet the project time line with an opening date of June On June 13, 2017 the Port Commission authorized the CEO to sign a long-term lease with Waterplace LLC, a partnership with Columbia Hospitality, to construct the 142-room flagship Hotel Indigo in Fisherman s Harbor at Waterfront Place. The hotel, owned and operated by Omar and Christine Lee, will more than double the capacity of waterfront lodging in Snohomish County. Of the 142 rooms, 119 will have views of the water. The hotel will have a 150-seat restaurant, lounge, swimming pool, 5,000 square-foot event space and a business center. Construction began in March of Hundreds of auger piles had to be installed before vertical construction could begin. To date, hotel contractor Ferguson Construction has completed three levels of the hotel and started interior work. The construction activity in Fisherman s Harbor will support 1,000 temporary construction jobs annually, 335 direct jobs, $7.6 million in annual payroll, and generate approximately $1 million in state and local taxes. WHAT S NEXT AT FISHERMAN S HARBOR OPENING JUNE 2019 PACIFIC RIM PLAZA & WATERFRONT TRAIL GUEST DOCK 5 K-DOCK L-DOCK SE MILLWRIGHT LOOP ROAD HOTEL INDIGO & RESTAURANT GRAND AVENUE PARK BRIDGE (LATE 2019) CONSTRUCTION BEGINNING 2019 WATERFRONT HOUSING WATERFRONT PLACE RETAIL & RESTAURANTS OPENING LATE WATERFRONT HOUSING WATERFRONT PLACE RESTAURANTS MARINE SUPPORT BUILDING 6 PORTSIDE WINTER 2019

7 SeaLevel Preleasing Yields High Returns CONSTRUCTION SLATED FOR JANUARY 2019 SE Millwright Loop Construction More public access to the Port of Everett waterfront is coming in late spring with the completion of SE Millwright Loop and the adjacent open spaces. The project connects the new Fisherman s Harbor esplanade to the existing esplanade along the Central Docks, as well as constructs new public open space between Hotel Indigo and the new Pacific Rim Plaza and splash fountain. The $3.7 million project by Granite Construction is expected to be completed late spring. This is an exciting time for our community, Port Commissioner Tom Stiger said. It will provide access to the waterfront s newest central gathering space at Pacific Rim Plaza, new lodging and dining at Hotel Indigo, and shortly thereafter, new housing and restaurant opportunities. Artist renderings of SeaLevel Properties apartments inside Fisherman s Harbor. Each building will pay architectural homage to the history of the waterfront. This upland infrastructure work follows the Port s initial $12 million infrastructure investment in Fisherman s Harbor. This project is the first phase of the Port s 65-acre mixeduse Waterfront Place Central development. Construction on the 266-housing units in the Port of Everett s Fisherman s Harbor will begin in January with pre-loading activities. Opening is scheduled for On Sept. 27, 2018, SeaLevel Properties held a pre-leasing event at the Port. The event resulted in 80 percent of the available units initially released being spoken for. People want to live and play on the waterfront we ve heard that message loud and clear, Port Commissioner Bruce Fingarson said. There is demand for waterfront housing and the initial response to the initial offering of units confirms that. It is likely there will be a second release of units as construction gets underway. There is indeed very high demand for high quality waterfront living in Everett, SeaLevel Properties Director, John Shaw, said. More than 180 people attended the early release event last fall. The units will include studio, one-, two- and three-bedroom apartments in two distinct, yet connected four-story buildings. Many of the units will include water or mountain views. The units are designed to reflect the distinct marine lifestyle, and pay tribute to the history of the waterfront s once thriving industrial and timber industries. The plans include a combination of contemporary urban design and rugged urban materials that incorporate natural resources like timber and steel that were once a staple of the Everett waterfront. I ve never seen such excitement for a new project especially one that is almost two years from completion, said Mike Simons, Executive Vice President of Allied Residential. For more information, visit com. SeaLevel Properties is a local, familyowned builder with multi-family development projects in Issaquah, Seattle s University District and Capital Hill neighborhoods. New Marine Support Building The Port of Everett has two letters of interests from well-known yacht brokers who are looking at expanding their presence in Everett. With the expansion and development of office space in the South Lake Union area of Seattle, more and more yacht brokers are looking north to Everett. With the letters of interests, Port staff will ask the Port Commission for authorization to start the design of a new marine support building east of Waterfront Center. The building, known as the PortSide Building, would back up to the boatyard and provide retail frontage for the yacht brokers. 7

8 SEAPORT S. TERMINAL MODERNIZATION: FULL STEAM AHEAD PREPARING FOR CARGO IN 2019 On August 15, 2018 the Port of Everett hosted a ground-breaking to commemorate the start of construction on the Port s South Terminal Modernization project the largest capital project in Port history by dollar value, and the largest maritime construction project on the West Coast today by dollar value. The $36 million South Terminal Modernization project will ensure the Port s facilities are ready to support the next generation of over-dimensional cargo, including aerospace parts for the new 777X. I find it fitting that as we celebrate the Port of Everett s centennial year in 2018, we continue to be forward-thinking, preparing the Port s infrastructure to carry us into our next 100 years, said Glen Bachman, Port of Everett Commission President. Completing critical infrastructure upgrades like this will better position the Port and its facilities to handle the larger vessels and heavier cargoes now calling Everett, including aerospace parts for the new 777X and other opportunities on the horizon. This project has come to fruition thanks to the strong, reliable and forwardthinking leadership of our Port Commission and the continuous support of our project partners at the local, state, federal and tribal levels. The South Terminal facility is a key piece of the Port s overall Seaport Modernization efforts. It s the largest of the Port s terminals by land footprint; however, the dock was originally built in the 1970s to support log operations, and in its current state, can only accommodate 500 pounds per square foot (psf) live load. Modern EVERETT FIRST PORT IN NATION TO SECURE FEDERAL RAIL LOAN As they said in Star Trek, to boldly go where no man has gone before or in our case, to boldly go where no Port has gone before, said John Carter, the Port s Chief Financial Officer as he asked for the Port Commission s approval of the Federal Rail Rehabilitation Improvement Financing (RRIF) Loan in October. On October 23, 2018, the Port Commission approved a $5.949 million RRIF loan with the U.S. Department of Transportation Build America Bureau for two key infrastructure projects that support the Port s Seaport Modernization efforts. The Port of Everett is the first Port in the nation to make it through the complex loan process. The two projects financed under the RRIF loan are the Port s Terminal Rail Improvements Phase II and the Cargo Transit Shed Relocation Project. These two projects, which are now complete, increased the Port s on-terminal rail footprint from 9,200 track feet to 12,500 track feet, and provide nearly 40,000 square feet of covered warehouse space for rail loading. Completing critical infrastructure upgrades like this will better position the Port and its facilities to handle the larger vessels and heavier cargoes and other opportunities on the horizon, said Glen Bachman, Port of Everett Commission President. The RRIF program, which includes $35 billion in available funding, was streamlined as part of the 2016 Grow America Act. Specifically, the Act said it will strengthen RRIF by reducing the cost of obtaining a loan, making RRIF more accessible, a vital tool for short line and regional railroads. This funding will help fund a key port in Washington state to handle more cargo, thereby helping our country remain competitive in the increasingly global economy, said U.S. Transportation Secretary Elaine L. Chao in an agency release. Speakers from the Port of Everett s South Terminal Ground-breaking Ceremony cargo operations require a minimum of 1,000 psf. Wharf upgrades also include new crane rails and electrical service for cranes. The Seaport Modernization was supported by dozens of businesses, educational institutions and public agencies in our region. It was also made possible by both of our U.S. Senators: the project received nearly $22 million in federal loans from the TIGER grant program established by Sen. Murray and FAST Lane grant program from Sen. Cantwell, as well as the Congestion Mitigation Air Quality (CMAQ) program. Since 2002, USDOT has issued 35 loans totaling more than $2.7 billion across 27 states. Most loan applicants and recipients were passenger train service providers, such as Amtrak, or large railroad corporations. The Port utilizes rail to support U.S. exports and imports, including the aerospace, construction, manufacturing, energy, agricultural and forest products industries. The project allows the Port to safely and efficiently transport goods from ship to shore, with cargo arriving and departing the terminals utilizing rail as well as trucks. The use of rail service for the cargo shipments has the potential to eliminate at least 429 million commercial truck miles off of the local roads and highways and reduce greenhouse gas and other air pollutants significantly. Additionally, these projects will retain and help grow the Port s 13,614 direct traderelated jobs, and provide approximately 145 construction jobs. 8 PORTSIDE WINTER 2019

9 COMMISSIONER FINGARSON APPOINTED TO NEXT MARKET AIRPLANE COUNCIL Port Commissioner and retired Boeing Logistics Manager, Bruce Fingarson, has been appointed to the Governor s Next Market Aircraft Council. Mill-A Interim Cleanup Action II: Dredging For Longer Ships The Everett Seaport is deepening and lengthening its South Terminal berth to accommodate modern ships as long as 950-feet in length. The project, titled the Mill-A Interim Action Dredging and Berth Improvements, is in response to customer needs to berth longer ships. Currently, South Terminal Berth accepts 700-foot long ships. The project s dredging will be the first maintenance dredging in this area since the late 1970s. Work is expected to begin in the fall and continue into spring 2020, although the permit timeframe may require a delayed start time. The result will be increased depths from about -37-ft mean lower low water (MLLW) to -40-ft MLLW. CARGO NEWS In August 2018, 228 hotel modules manufactured in Poland arrived at the Port of Everett Seaport. Each room, fully furnished minus a mattress was individually offloaded and stored at the Port, waiting for transport to the new citizenm hotel in Seattle s South Lake Union neighborhood. In October, assembly of the hotel modules began with an anticipated finish date of June The Port will also install large pneumatic fenders on the wharf to help position the ships into deeper water; install two new dolphin berths to the south of the wharf to tie up the ships as they extend to the south; and mitigate for the environmental effects of the maintenance and new infrastructure. Approximately 26,000 cubic yards of sediment will be dredged. The contaminated portion of dredging will be removed under an agreement with the Department of Ecology and disposed of at an approved land fill. Mill-A Interim Action Dredging and Berth Improvements is part of the Port s strategic initiative to modernize its seaport. In September 2018, Captain Robert Loken and Gateway Director for Inland Waterways, Chad Dorsey, from the U.S. Maritime Administration got a front row seat on how the Port of Everett s short sea shipping tug operation for the aerospace industry operates with a tour from acting CEO Lisa Lefeber. A special thank you to Port Tenant Brusco Tug and Barge for the hospitality. Boeing is considering whether to design and build an all-new aircraft dubbed the New Mid-Market Airplane (NMA). If Boeing decides to move forward, the next big question will be where to design, produce, and assemble it. Siting is a huge decision involving massive risk and billions of dollars. Analysts expect both decisions to be made in The NMA Council website says that Washington offers the lowest risk and highest return on Boeing s potential investment to design, produce, and assemble the NMA. The council said they don t take our position for granted and haven t for over 100 years. It took time and hard work to get to where we are today. Together, the state has problem-solved, increased productivity, and invested billions in infrastructure to achieve every milestone from the 707 to the 10,000th Boeing 737 this year. This dedication is why Washington s aerospace industry is so well positioned today, with infrastructure built around aerospace, an extensive aerospace supply-chain, the nation s highest-skilled workforce, a competitive tax structure, site investments like the Composite Wing Center, and proven production value all complemented by a coveted quality of life across the state. Still, the state is doing more. The stakes are huge and long-term. Competition will be fierce dozens of locations in the U.S. and around the globe will be vying for this plane and offering huge incentives. If Washington is chosen, it will ensure that our state remains the global aerospace leader for another generation. 9

10 ENVIRONMENT PORTS PURSUE LEGISLATION TO BRING FINANCING PREDICTABILITY TO ENVIRONMENTAL CLEANUPS Since 2007, the Port of Everett has successfully worked in partnership with the state Department of Ecology and our private partners to clean up 212 acres of historic contamination in our waterways. The Port of Everett has long served as the economic engine for our community, leveraging the deep harbor of the Everett waterfront into jobs and opportunity for generations of families. By returning contaminated sites to productive use, we clear the way for economic growth, public access and a healthier harbor. In the past decade, the Port has aggressively pursued these cleanups, and now 71 percent of our upland properties are restored. These cleanups have facilitated the revitalization of the waterfront with the Fisherman s Harbor development underway with residences, a hotel and restaurants. They have also allowed our business development team to recruit several new tenants to our Riverside Business Park, which will support upward of 800 jobs in the region. But we aren t done yet. Our largest cleanup the Weyerhaeuser Mill-A Cleanup is right in front of us with a cleanup cost exceeding $100 million. The Port needs $16.25 million in matching state funds to implement its legal requirement to clean up the Mill A site in the budget. The cleanup is a precursor to future economic development at the Seaport. Mill-A was a former Weyerhaeuser Mill that operated on the Everett waterfront for nearly a century. The state is critical to implementing this cleanup, in addition to Weyerhaeuser s fair contribution. The Mill-A site is located in the heart of the Port s international seaport, which supports the No. 1 customs export district in Washington state at $29.3 billion in exports in It also supports more than 35,000 jobs in the region, with 60 percent of jobs within Snohomish County tied to international trade. The statewide percentage tied to trade is 40 percent. Our Legislative Request: Pass the Hazardous Substance Stabilization Act: The act would stabilize the remedial action grant program in the Model Toxic Control Account (MTCA) in the long-term, and provide financial reliability and predictability for local governments relying on the program to clean up contamination. Fund the first biennium of the Port of Everett s Strategic Seaport Cleanup Project (Mill-A Project) for the 2019/2021 biennium in the amount of $16.25 million. 10 PORTSIDE WINTER 2019

11 BUDGET Budget Message PORT COMMISSION ADOPTS $102M 2019 BUDGET The Port of Everett Commission has adopted a $102 million operating and capital budget for The budget assumes a robust capital investment portfolio, with moderate improvement in seaport activity, steady growth in the marina and a slight decline of real estate revenues due to the sale of leased assets. The Port of Everett s 2019 budget is designed to position the Port to implement its Strategic Initiative portfolio, specifically preparing for modernization at the Seaport and creating a new waterfront community with Waterfront Place Central Development. These initiatives have been established by the Port Commission and are directing both the long-term financing as well as the allocation of staff resources. The 2019 budget includes a one-year operating and capital budget as well as a five-year capital budget forecast with a threeyear funding plan. The 2019 budget plan assumes $25.1 million in operating/non-operating expenses, combined with $58.7 million in new capital investment in addition to $9.8 million in capital investment carrying forward from The Port also anticipates spending $2.1 million for work to remediate legacy pollution on Port properties. In addition to these amounts, the Port will pay $6.3 million in principal and interest on its long-term debt. This budget employs just under 100 employees who operate and manage a full service international seaport, marina and the development of nearly 3,000 acres of waterfront property. 29.4% 1.3% 4.9% 14.4% 16.6% 10.9% 2% 8.8% 11.3% 14.4% 1.3% 29.4% 4.9%.4% 9.6% 57.5% SOURCES OF FUNDS 11.3% 16.6% 10.9% 2% 8.8% Seaport Revenues Marina Revenues Properties Revenues Cash Reserves Grants/Third Party Sale of Property Capital Contributions Debt Issuance Property Taxes Non-Operating 2.1%.5% USES OF FUNDS 11.6% 6.9% 1.3% 3.8%.5% 6.1% 2019 CAPITAL INITIATIVES The Port of Everett s long-range Strategic Initiatives include more than 145 capital projects, totaling $392 million, $282 million of which are classified as opportunity. For 2019, the Port s capital budget proposes work on 53 of the capital projects, the largest being the construction of the South Terminal Wharf and Electrical Upgrade, Fisherman s Harbor construction and the Central Marina Improvements. The Port of Everett s capital initiatives are proposed to be funded through operating revenues, tax collections, third party payments, as well as through the issuance of revenue and general obligation bonds and supplemented by the use of cash reserves. 11.6% 6.9% 1.3% 3.8%.5% 6.1% 57.5% 9.6% 2.1%.5% PORT PROPERTY TAX LEVY FAQs TOTAL COLLECTED BY THE PORT? $4.9 Million Seaport Operations Marina Operations Properties Operations Administrative Expense Non-Operating Expense Debt Payments Capital Investments 2018 Capital Carry Forward Environmental Remediation Public Access Expenditures HOW MUCH DO I PAY? Port taxes represent less than 1% of your total tax bill. The millage rate is $0.25-cents per assessed $1,000. The estimated annual Port tax for a $400,000 home in 2019 is $102; in 2018 it was $108. HOW ARE TAXES USED? Environmental restoration and public access. HOW ARE TAXES NOT USED? Any operating costs, including salaries and benefits. 11

12 REAL ESTATE Arlington-Marysville MIC UPDATE The Arlington-Marysville Manufacturing Industrial Center (AMMIC) is a step closer to state designation with the development of a draft subarea plan. The City of Marysville held an open house in October 2018 to collect public input on the plan, including issues of transportation, stormwater management, streets and trails and workforce development. An aerial view of Riverside Business Park. Today, all but two property parcels are either fully developed, in construction or under contract. Riverside Business Park Development Continues The Port of Everett s real estate line of operations continues to make progress at Riverside Business Park and along the waterfront. Once home to Weyerhaeuser s Mill B, the Port purchased the 85-acre property in 1998 with hopes of turning the once thriving mill site into a modern day economic driver. That change began in early 2018 when Northwest Aerospace Technologies, a Boeing supplier opened its doors at its new facility, bringing with it 200 new jobs. With easy access to I-5, a FedEx Freight facility was completed and opened in In addition, Panattoni Development is constructing more than 200,000 square feet of light industrial space. The new business park, aptly named Glacier Peak, broke ground in 2018 and is set to be completed later this year. An additional building pad of 85,000 square feet is being offered as a build-to-suit project by Latitude Development, LLC and the remaining two parcels are offered by the Port for sale or lease. Bay Wood Property Latitude also entered into a conditional purchase and sale agreement with the Port for approximately 13 acres of the Bay Wood property. The Port is requiring that the purchaser first secure a high-quality tenant who will provide at least 10 jobs per acre. Bay Wood was the first property, along with Jetty Island, that the Port bought when it was established as a Port District in It is bitter-sweet that we are selling it during our Centennial year, said Lisa Lefeber, then-acting CEO and Port Chief of Policy and Communications. But, the Port s priority is to transform underutilized, contaminated sites back into job creation centers and tax generators, and this project will do just that. The Port s priority is to transform underutilized, contaminated sites back into job creation centers and tax generators, and this project will do just that. The Port and Economic Alliance of Snohomish County both have partnered with the cities of Marysville and Arlington on the AMMIC. The 4,000 acre property lies in both cities. A state law offered tax exemptions to create industry, and the city received grants to conduct the master planning. Manufacturers who create 25 new fulltime jobs paying at least $18/hour, along with other requirements, will benefit in industrial centers created under this law. Development of the AMMIC is estimated to generate 25,000 new jobs by 2040 and will further improve the quality of life for county residents by providing close-to-home working opportunities. DID YOU KNOW? AMMIC total land area: 4,019 Acres 57% in Arlington 43% in Marysville 25,000 New jobs by % of Snohomish County Residents work outside the county 12 PORTSIDE WINTER 2019

13 PUBLIC TENANT ACCESS NEWS WOODFIRE REMODEL Anthony s Woodfire Grill in Marina Village has a fresh new look. The restaurant updated its dining room, re-designed the menu and added a new fireplace for those cozy winter nights. McVey Oakley Design Studio, based in Seattle, assisted with the update. The studio has also worked with Sky City at the Space Needle and Chihuly Garden and Glass. Anthony s Woodfire Grill features specialties from its custom-built rotisserie and serves Northwest seafood and beef selections in the Everett Marina Village a few doors down from Anthony s HomePort Everett. ORCA GRANT Everett Community College s Ocean Research College Academy (ORCA) received a $333,688 grant from the National Science Foundation (NSF), its fourth grant representing a total NSF investment in ORCA of nearly $1 million. The funding is aimed at increasing the number of college students studying geoscience and providing them the dedicated time and relationship support needed for high-caliber research. To have such committed support by NSF for the innovative work we do at ORCA is a tremendous honor, said Ardi Kveven, ORCA founder and executive director. The three-year grant funds summer scientific research opportunities for ORCA students, tuition for summer college classes, travel to scientific conferences and a summer program stipend. This past summer, 11 ORCA students helped analyze the data from the Washington State Department of Ecology water quality probes. Gravity Marine Consulting built the infrastructure to transmit the data online. The University of Washington analyzes additional water samples and the Port of Everett supports the deployment of these probes by providing dock access to the students and equipment. Kveven founded ORCA, an early college academy for high school students, using a Bill and Melinda Gates Foundation grant. Today, its funding comes mostly from the Running Start program, which provides college credit to high school juniors and seniors. Most ORCA students will graduate from the program with an Associate s degree. While 66 percent of ORCA graduates transferred to and graduated from fouryear universities with a STEM degree, less than 10 percent earned oceanography degrees, Kveven said. SHIPYARD RECRUITMENT The Port of Everett is actively marketing 15 acres of leasehold property adjacent to its seaport to attract a high-quality shipyard. Since Vigor vacated its shipyard at the Port of Everett, there has not been a functioning facility on site. As the military ramps up its naval fleet from 280 to 355 vessels, additional demand for shipyard capacity continues to grow. A quality shipyard is critically important to the Port of Everett and the military, said Port of Everett CEO Les Reardanz. We are working hard to ensure that demand is met. OCEANGATE UPDATE OceanGate collaborated with SeaDoc Society in September 2018, providing grants and the Cyclops 1 submersible to study the Salish Sea ecosystem around the San Juan Islands. The week-long series of dives in OceanGate s manned vessel allowed researchers to study the Salish Sea ecosystem. Just like the space shuttle provided a unique perspective for scientists to understand space, Cyclops 1 provides our only opportunity for direct human observation of these deep-sea environments, said SeaDoc science director Joe Gaydos. Three teams of researchers studied deep-dwelling red urchins, sand lance habitat and the effects of seafloor trawling. Exciting discoveries were made as a result. SeaDoc s website said team after team [was] brimming with excitement after popping out of the sub after several hours of deep sea immersion. For example, one of our teams spotted a red urchin and drift kelp at 284 meters deep, which is more than double the previous record. A discovery like that drastically expands the range of a species and expands our thinking about the role of drift algae... answering questions and creating many new ones along the way. OceanGate s trip to the Titanic is back on for The Titan, the manned pressure vessel made of carbon fiber and titanium by the Port of Everett based company, didn t make the journey last year after lightning struck the submersible vessel during deep-water testing in the Bahamas. OceanGate wants to achieve the first crewed expeditions to the Titanic since the 2012 centennial of its maiden-voyage sinking, which claimed more than 1,500 lives after hitting an iceberg. The ship is at 13,000 feet below sea level. OceanGate spent the remainder of last summer continuing testing. Crews on this trip will include professional scientists as well as mission specialists. The specialists pay a fare equal to the inflation-adjusted price for a 1912 ticket on the Titanic for a first-class passenger: $105,129 per person. 13

14 PORT BRIEFS CENTENNIAL RECAP 2018 was a big year for the Port of Everett. Celebrating our Centennial also required reflecting on our past. Those reflections came two-fold; a book - Port of Everett: The First 100 Years, looking back on the vast history of the Port from its early years to present day, and a Centennial Mural painted by local artist Sherrill Hull (photo to the right). The mural brings to life the transition of the waterfront from the days of shingle mills and smokestacks to current day aerospace and breakbulk cargoes coming through the Port. DID YOU KNOW? Every week in 2018, the Port of Everett s throwback Thursday on social media highlighted fun facts and showcased historic photos from the Port s first 100 years. Visit our Facebook and Instagram pages to view the entire collection. Citizens interested in purchasing a copy of the book can visit www. portofeverett.com/historybook for more information or purchase inperson at The Daily Herald. The mural, on display inside the Port of Everett s Waterfront Center, was unveiled on July 12, 2018 at the Port s annual Port Report and Summer Cruise #portofeverett NAVAL STATION EVERETT NEWS CARRIER UPDATE NEW COMMANDER AT NSE In late 2018, the community learned of the Navy s decision to keep the USS Aircraft Carrier Nimitz in Bremerton due to the age of the vessel and its maintenance needs. Community leaders met with Secretary of the Navy, Richard Spencer, regarding the decision, who said, Naval Station Everett remains an important part of the Navy s long-term planning and we are committed to its continued use. While community leaders will continue to advocate for the return of an aircraft carrier, the Secretary of the Navy has indicated that more destroyers will be home ported at the base in the coming years. Naval Station Everett has a new base commander. In June, Capt. Mike Davis (pictured right) relieved Capt. Mark Lakamp as Commanding Officer of the Naval Base. The change of command ceremony was attended by military personnel, federal civilian employees and guests from the community. After three years at Naval Station Everett, Lakamp is now the commanding officer of Naval Reserve Officers Training Corps at the University of Nebraska. Capt. Davis came to Everett after being stationed at the U.S. Pacific Command as the Deputy Division Chief for Space and Integrated Air and Missile Defense Division. From , Davis commanded the guided-missile frigate USS Rents (FFG 46). Welcome to Everett, Capt. Davis! 14 PORTSIDE WINTER 2019

15 EMPLOYEE FOCUS As a captain in the U.S. Navy Reserve Judge Advocate General Corps (JAG), Les has served overseas four times since the World Trade Center attacks of Many of his JAG colleagues credit him with mentoring them as new JAG officers, and have relied on his guidance even when stationed in other parts of the world. Reardanz is widely recognized for personal ethics and professionalism, and his positive, friendly, and patient leadership. CEO LES REARDANZ RETURNS FROM DEPLOYMENT Port of Everett CEO Les Reardanz had an eventful year in 2018 from taking leave from the Port to serve in Afghanistan in the U.S. Navy Reserves, to being honored with a prestigious award from his peers at the Washington State Bar Association for public service. Les returned home from his tour of duty mid-november In September, while still in the Middle East, his wife Dianne accepted his award from the state s Bar Association. To a standing ovation and surrounded by Les fellow Naval officers, Les was bestowed the Angelo Petruss Award for Lawyers in Government Service. This award is given to a lawyer in government service who has made a significant contribution to the legal profession, the justice system, and the public. PORT EMPLOYEE DONNA HOSPODAR CELEBRATES 25 YEARS AS MARINA SLIPHOLDER Port of Everett employee Donna Hospodar and her husband Marty celebrated their 25th year as slip holders at the Port of Everett Marina in Donna has worked in the marina office for the past 12 years and says, I can t imagine working anywhere else! A Personal Account by Donna Hospodar: We love the marina and all the friendly people we have met. The facilities are clean and well maintained. Everett is close enough to home to just come down to the marina and spend the weekend, enjoy live music, the farmer s market and the beach at Jetty Island. Les returned to his duties as the Port of Everett CEO after nine months in Afghanistan. The Port Commission honored Les with a commemorative plaque, honoring his public and military service. I think the Angelo Petruss Award is perfect for Capt. Reardanz, said Tony Hinson, a Poulsbo attorney and Lieutenant Commander in the U.S. Navy JAG Corps. His entire professional career has been devoted to public service. His colleague also described Les as part diplomat, part relationshipbuilder representing in a flawless, direct, and dignified manner. Port Chief of Policy and Communications Lisa Lefeber, who was Acting CEO in Les s absence, praised Les, as well. Les has always been such a positive force at the Port and he was sorely missed during his deployment. It s no surprise to those of us who know him that he would be so well respected among his peers. It also provides excellent crabbing close by. Also, I love to run and I enjoy the safe and scenic trails provided around the marina. We are grateful for all that the marina and the employees provide. The Port of Everett Marina is in an excellent location close enough to Seattle so we can easily spend a weekend in the city on the boat, and yet not too far from the San Juan Islands. MICHAEL WALLACE: PORT OF EVERETT IRONMAN miles. That s the total distance Marine Terminals Maintenance employee Michael Wallace has swam, biked and ran not just once, but twice. Competing in the Ironman triathlon, the toughest of the triathlon races, Wallace completed his second and most recent, the Ironman Canada in July of I ve raced Whistler twice. It s been voted the toughest of North American Ironman races. This last year the bike course had 8,000 feet of elevation, the temperature was pushing upper 90s. Top speeds of 52mph and lows of 8mph grinding up the highway to the village. Then the run. Keep in mind we had upper 90s on the bike. So by time I started the run it was 100. I liked the challenge and look forward to my next race, said Wallace. Wallace and his wife joined the Everett Triathlon Club which helped him prepare for the event. Tri-Club is definitely Everett s best kept secret with reference to like-minded athletes who encourage and support one another. Without a doubt a rich resource that is prime for anyone looking to do more with respect to racing, be it swim, bike or run, Wallace said. Wallace is already gearing up for his next race, training for the Santa Rosa Ironman in May GOT WHAT IT TAKES TO BE AN IRONMAN? 112M 26.2M 2.4M 15

16 PRSRT STD US Postage Paid Seattle WA Permit No Craftsman Way, Suite 200 PO Box 538 Everett, WA ECRWSS POSTAL CUSTOMER COMMUNITY SURVEY Strategic Visioning: The Next 100 Years Name: Affiliation with the Port of Everett: Employee Slip-holder Community Member The Port of Everett is YOUR Port. We are a government agency charged with economic development of Everett s working waterfront. We want to know what you think! Please fill out the survey below, cut it out, stick it in an envelope, add postage and mail it to PO Box 538, Everett, WA Surveys can also be filled out online at portofeverett.com/next100. Business Other What does the Port of Everett mean to you? (How often do you visit?) Where and what should the Port focus its industrial growth on (i.e. supporting e-commerce, air cargo, logistics and distribution centers, inland port facilities)? What types of industry jobs and/or cargoes would you like to see the Port support in the future? 16 PORTSIDE WINTER 2019